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Mortgage rates are dropping?

January 20th, 2010 3:27 PM

30 year fixed rates are back down to 5.125% again with NO points

The downward movement looks stronger now and it seems that it could hit 5.0% anytime now. It's on the low side of 5.125% today.

This is some of the economic data I read today:

"Wednesday's bond market has opened in positive territory following the release of favorable economic data and early selling in stocks. The stock markets are reacting to some disappointing earnings results and the same economic data that is fueling the early buying bonds. The Dow is currently down 175 points while the Nasdaq has lost 40 points. The bond market is currently up 10/32, which will likely improve this morning's mortgage rates by approximately .125 of a discount point.
If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opini on and cannot be guaranteed to be in the best interest of all/any other borrowers."

This reporter seems to think that rates will STILL go lower. The negative news about unemployment, housing starts and producer prices all seems to be saying rates will go lower.

Hopefully, we will see a further drop in rates this week.

Posted by John Matthews on January 20th, 2010 3:27 PMPost a Comment (0)